CryptoQuant: Long liquidations have partially "bottomed out," opening up space for a short-term recovery

ChainCatcher news, CryptoQuant analysts indicate that the liquidation of long positions may have established a local bottom. Although price sentiment remains bearish and technical indicators suggest the possibility of further declines, the liquidation levels of long positions in the Bitcoin futures market indicate that selling pressure has eased. During significant price drops, the number of contracts purchased often declines sharply due to liquidations, thereby alleviating the market's selling pressure.

On October 1, over 4,000 BTC long positions were liquidated, marking the second-largest liquidation event of 2024 according to CryptoQuant data. Typically, these moments of high losses and liquidations form local bottoms, opening up space for short-term recoveries. Currently, prices may maintain the current range in the short term, but attention needs to be paid to the buying strength to reverse the downward trend.